Question

George failed to pay $5,000 of income tax due with the filing of his return, which was timely filed on April 15th. He waits until June 10th after April 15th to pay the tax. How much will his penalties be?

Answer 1

George penalties will be $50.

Explanation:

Penalty is a punishment imposed on the person due to violation of law or contract. Penalty fee is the amount collected from the person for not paying his debts or bills.

Penalty is imposed on the person for the purpose of punishing. If he/she fails to pay their bills, taxes or money borrowed, they will be imposed with penalty charges. So the individual should pay an additional amount as the penalty amount with his original charges.

In the above scenario, George fails to pay his income tax within the given time. So he was charged with the penalty of $50.